Digital Negative is a new iPhone app which promises to save photos in Adobe’s DNG format. That is, it promises RAW images from your iPhone’s sensor. Leaving aside the debate of whether or not this is a good idea (more on that in a second), can an App Store app really get access to the raw, unprocessed data from the sensor? The answer is no, but to the developer’s credit, it goes just about as far as is possible.
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The DNG spec has been updated to v1.4 by the folks at Adobe, and it brings support for cropping, HDR, panoramas and lossy file compression. With these changes, maybe it's ready to replace JPEG in iDevices?